Canadian trucking company TransForce Income Fund has sold the hazardous waste and industrial cleaning operations of its waste management subsidiary Services Matrec Inc. to the Newalta Income Fund for $31.8 million in cash. The move, announced Tuesday, Oct. 3, comes as Matrec focuses on developing its larger solid waste and recycling operations, TransForce said in a release. The division generates annual revenue of about $20 million.
The company said the sale will close shortly, pending normal terms and conditions. “We consider our waste management segment a key growth area for TransForce, but will grow our presence in that industry through businesses in which we have a strategic and competitive advantage,” said Alain Bedard, chairman, president and chief executive officer of Montreal, Quebec-based TransForce.
The sale comes after Bedard told unitholders in April that TransForce would continue to pursue acquisitions, as recent ones have proven to be extremely profitable. Since then, the company has bought Edmonton-based Byers Transportation System and oilfield equipment transporter Howard’s Transport Services.
